Promoting Technologies to Stop Climate Change
- Technology is useful in mitigating the adverse effects of climate change
- The green technologies and sustainability market is predicted to grow in the coming years
- Investors should be weary of potential pitfalls when investing in new technologies
The Role Technology Plays
Due to the adverse effects fossil fuels and the depletion of resources for technologies has had on the environment, some people may feel inclined to pair technology against the climate. However, technology is also assisting us in mitigating the effects of climate change as well. Take for example technology used to capture methane gases at landfills and turn it into renewable electricity or fuel, which is more sustainably sourced than fossil fuels. Another example includes wireless networks that connect all aspects of our operations and can direct us towards further efficiency and sustainability in our everyday lives. In fact, technology has already played a significant role in reducing our greenhouse gas emissions by 40% over the past decade as it is, and it will only increase as companies turn to developing more sustainable technologies for the future.
Types of Technologies To Look Into
This is where investors come in. In order to incentivize other tech companies to develop more sustainable products, there needs to be a significant demand for them in the first place. By investing in tech companies that are already heavily involved with the green technology and sustainability market, other companies will be forced to engage in these activities in order to keep up with the market.
As of 2019, the green technology and sustainability market was valued at $8.79 billion and is projected to grow at a compound annual growth rate of 24.3% by 2027. Any technologies with eco-friendly solutions that result in economic or social sustainability are defined as green, such as energy that’s less harmful to the environment and serves as an alternative to fossil fuels. These technologies are essential in preserving the environment and in mitigating the effects of climate change. The Internet of Things (IoT) technologies, in particular, are the dominating technology of this market — and are expected to continue dominating the market for the foreseeable future — due to the development of green networks in IoT connectivity. These networks assist in curbing pollution, reducing environmental exploitation, and minimizing operational costs and consumption. Companies that are heavily involved with IoT technologies are already on a good path to becoming more sustainable, and would be a good addition to any investors portfolio.
Possible Environmental Side-Effects
Of course, not all that glitters is gold. For investors looking to invest sustainably and avoid potential pitfalls in their investments, it should be noted that even green technologies can be procured in an unsustainable manner (at least in the transitioning period from fossil fuels to renewable energies). For example, the mining, transportation, and processing of inputs used to develop renewable energy infrastructures will still require an increase in fossil fuel use until new renewable energy infrastructure is built. However, as long as investors are aware of the potential consequences associated with developing this new technology, and pay attention to which companies are making an effort to procure their technology sustainably, then investment in these technologies will be highly encouraged. In fact, they’re necessary in order to complete the transition into a carbon-free society.
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Green Technology and Sustainability Market